CFX For personal use only - Australian Securities Exchange
128
CFX CFS Retail Property Trust Group Annual Report 2013 Our approach to retail property investment Responsible Entity Commonwealth Managed Investments Limited ABN 33 084 098 180 AFSL 235384 Manager Colonial First State Property Retail Pty Limited ABN 19 101 384 294 Not guaranteed by Commonwealth Bank of Australia For personal use only
CFX For personal use only - Australian Securities Exchange
Our approach to retail property investment
Responsible Entity Commonwealth Managed Investments Limited ABN 33
084 098 180 AFSL 235384
Manager Colonial First State Property Retail Pty Limited ABN 19 101
384 294
Not guaranteed by Commonwealth Bank of Australia
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CFS Retail Property Trust Group (CFX) is committed to being the
leading manager of Australian retail property.
It’s a commitment that drives us to deliver on our promise of
providing long-term sustainable returns for our investors.
By drawing on the scale, experience and expertise of our team, we
are able to focus on all angles to optimise asset and investment
performance.
That’s our 360° approach.
DISCLAIMER
Neither Commonwealth Bank of Australia (the ‘Bank’) ABN 48 123 123
124 nor any of its subsidiaries guarantees or in any way stands
behind the performance of CFS Retail Property Trust 1 ARSN 090 150
280 and CFS Retail Property Trust 2 ARSN 156 647 853 (together CFS
Retail Property Trust Group (CFX)) or the repayment of capital by
CFX. Investments in CFX are not deposits or other liabilities of
the Bank or its subsidiaries, and investment-type products are
subject to investment risk including possible delays in repayment
and loss of income and principal invested.
The information contained in this annual report (the ‘Report’) is
intended to provide general advice only and does not take into
account your individual objectives, financial situation or needs.
You should assess whether the Report is appropriate for you and
consider talking to a financial adviser or consultant before making
an investment decision.
All reasonable care has been taken in relation to the preparation
and collation of the Report. Except for statutory liability which
may not be excluded, no person, including Commonwealth Managed
Investments Limited (CMIL or the ‘Responsible Entity’) ABN 33 084
098 180, Colonial First State Property Retail Pty Limited ABN 19
101 384 294 or any other member of the Bank’s group of companies,
accepts responsibility for any loss or damage howsoever occurring
resulting from the use of or reliance on the Report by any person.
Past performance is not indicative of future performance and no
guarantee of future returns is implied or given.
Copyright and confidentiality
The copyright of this document and the information contained in it
is vested in the Responsible Entity, the Bank and the Bank’s group
of companies.
Cover and this page: Chadstone Shopping Centre, VIC
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4. FY13 highlights
14. Our portfolio
24. Asset summaries
40. Investing responsibly
44. Investor relations
46. Our structure
48. Corporate governance
63. Financial report
116. Supplementary information
125. Directory
Use your smartphone to scan this QR code to find out more
about CFX.
CFS Retail Property Trust Group Annual Report 2013 1
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17,000+
We focus on all angles to optimise asset and investment
performance
Performance
ProteCt We actively manage our capital to protect CFX’s strong
balance sheet whilst managing risk and maintaining
flexibility
Page 10
researCh We have high-quality research which drives our investment
decisions
Page 18
govern We have a robust corporate governance framework and pursue
best practice in everything we do
Page 48
minimise We seek to minimise our environmental impact by reducing
water and energy consumption, waste outputs and carbon emissions,
while driving bottom line efficiencies across our portfolio
Page 40
manage Our platform has over 950 property specialists and CFX’s
portfolio benefits from one of Australia’s largest and most
experienced retail property management teams
Pages 12, 18 anD 46
our business moDel
2 CFS Retail Property Trust Group Annual Report 2013
360° approach to retail property investment
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$8.6b
4,200
lease We focus on maintaining fully occupied shopping centres and
actively remixing our retail spaces to ensure they are vibrant and
appealing
Page 18
engage We engage with our retailers, customers and communities to
build quality relationships which underpin investment
outcomes
Pages 18 anD 40
Promote We combine traditional and digital marketing to drive
customer traffic through our centres
Page 18
DeveloP We redevelop, refurbish and reposition our assets to
provide compelling places to shop
Page 20
Results
In everything we do, we are focused on long-term sustainable
returns
Everything
100% invested in Australia
10.5% Total return in FY13
CFS Retail Property Trust Group Annual Report 2013 3
Page 14
Assuming the reinvestment of distributions, $100 invested in April
1994 is worth $824
$824$100
Our year in a snapshot
The year that was 2012
5 September
CFX was recognised as a ‘Green Star’ by the Global Real Estate
Sustainability Benchmark (GRESB)
October
CFX awarded for valuations and corporate governance at 2012
Asia Pacific Real Estate Association’s Best Practices Awards
30 October
September 2012 quarterly update, with comparable specialty sales up
2.6%
8 November
CFX was included as a leader in disclosure and performance
in the Carbon Disclosure Project (CDP)
November
December
QueensPlaza was named #1 in the ‘Little Guns’
for specialty sales/sqm for the 6th consecutive
year
December
Negotiated a $100m 5-year forward-start bank debt facility with a
19 June 2013 start date
6 December
CFX delivered solid performance in a challenging environment
Distribution per security
13.6c (2012: 13.1c)
2.0% Gearing
28.8% (2012: 26.6%)
1 Refer to the table on page 11 for the calculation of net property
income and like-for-like net property income.
7-year MTNs issued
2013
21 February
1H13 interim results, delivering 6.8 cents distribution per
security, up 4.6%
March
Chadstone named #1 in the ‘Big Guns’ for total sales for the
12th consecutive year
23 April
CFSGAM Property investor day and March 2013 quarterly update, with
comparable specialty sales up 2.5%
23 April
Announced Australia’s first UNIQLO store to open at Emporium
Melbourne
April/May
Completion of over $100m in convenience- based developments at
Roxburgh Park, Forest Hill and Brimbank
3 May
Reinstated CFX’s Distribution Reinvestment Plan for the
June 2013 distribution
19 June
A second half distribution of 6.8 cents
per security, up 3.0%, announced
June
Total assets
$2.04 (2012: $2.07)
$10,066 (2012: $9,576)
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Chairman’s letter
Chairman’s letter
CFX has not wavered from its strategy of intensively managing a
portfolio of quality Australian shopping centres, backed up by
prudent capital management, to optimise performance
Consistent
Up 3.8% on the prior year
“CFX has met the challenge of a difficult retail environment
to deliver another solid result for investors.”
Richard Haddock AM Chairman
Dear securityholder, CFX has reported a solid year, meeting the
challenges of a difficult retail environment to deliver investors a
distribution of 13.60 cents per security, a 3.8% increase on
the prior year.
This positive outcome was underpinned by CFX’s long-held
strategy of intensively managing a portfolio of quality
Australian retail property assets, backed up by prudent capital
management to derive long-term sustainable returns.
CFX reported an annual profit of $295.0 million, which was
down from $409.2 million in the prior year primarily due to
the differences in property revaluations between the two
periods. A full-year distribution per stapled security of
13.60 cents was delivered compared to 13.10 cents in the prior
year.
6 CFS Retail Property Trust Group Annual Report 2013
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The Manager continues to drive growth through long-term investment
strategies including active tenant remixing and shopping centre
developments. CFX completed a number of redevelopments at some of
our smaller shopping centres; transitioning Roxburgh Park from a
neighbourhood shopping centre to a sub-regional shopping centre
and, at Forest Hill Chase and Brimbank, improving convenience-
based shopping experiences for local consumers.
The Manager has made solid progress on the development of Emporium
Melbourne, with 90% of income secured. The tenancy schedule
includes some of the worlds best luxury and international brands,
some of Australia’s most noted fashion labels and iconic food
retailers. During the year, the asset’s valuation was written down
by $125.9 million. This decrease refl ects a change of
building works to accommodate the strength of demand from
international and luxury tenants, together with the delay in the
completion date and taking into account the subdued leasing
environment. We remain confi dent, however, that we are creating a
world-class retail destination and look forward to its opening at
the end of the fi rst quarter of calendar year 2014.
During the period, we reinstated CFX’s Distribution Reinvestment
Plan (DRP), a funding source for CFX’s development pipeline,
raising $56.9 million from the June 2013 distribution.
This year, CFX reached two major milestones in its responsible
property investment program. CFX completed NABERS ratings for the
entire portfolio1, achieving an average of 3.0 stars for energy and
3.4 stars for water. The Manager also undertook an extensive
analysis to better understand the material environmental, social
and governance (ESG) issues that concern CFX’s stakeholders. By
identifying our stakeholders’ level of interest and engagement
compared to CFX on a range of ESG matters, we have been able to
prioritise these into our business risk model.
On 24 July 2013, the Board announced it had received a highly
conditional, indicative and incomplete proposal from Commonwealth
Bank of Australia to internalise the management of CFX and for
CFX to acquire its wholesale property funds management and
integrated retail property management and development
businesses.
The CMIL Board has established an Independent Board Committee (IBC)
comprising the independent Directors being Nancy Milne OAM,
James Kropp and myself, to consider the proposal. The Board of CMIL
can give no assurance that the proposal, or any other
proposal, will proceed. It is also noted that the approval of CFX
securityholders would be required.
The IBC has engaged independent advisers to assist in its
consideration of the proposal and will update the market as and
when it is in a position to do so.
In the year ahead, while the Board is encouraged by some positive
economic indicators for retail sales such as positive real wages
growth, rising house prices and falling interest rates, it is
anticipated that sales growth will be modest and there will be
constrained demand for the expansion of retailers.
CFX plans to further refi ne the quality of its portfolio through
the sale of non-core sub- regional shopping centres. Given the
higher yielding nature of this type of centre, their divestment
would result in a short-term dilution to earnings, which over time
would be partially offset by the reinvestment of the proceeds. The
proceeds will initially be used to retire debt, providing CFX with
fl exibility to pursue value enhancing initiatives such as
investing in its development pipeline or acquiring
properties.
On the basis that these non-core assets are sold during the year,
CFX provides full-year distribution guidance2 per security of 13.2
to 13.3 cents. If these assets are not sold during the year, CFX’s
distribution guidance would be revised to 13.7 to 13.8 cents.
On behalf of your Board, I thank you for your continued support of
CFX.
Richard Haddock AM Chairman Commonwealth Managed Investments
Limited
CFS Retail Property Trust Group Annual Report 2013 7
1 All centres that are able to be rated which excludes the DFO
retail outlet centres, Post Office Square, The Entertainment
Quarter, Myer Melbourne and any asset which was impacted
by development or refurbishment, or there was insufficient
metering.
2 Assuming performance fees are payable for the full financial year
and there is no unforeseen material deterioration to existing
economic conditions. Guidance is based upon the current operating
model (Refer to Note 20 of the Financial Report for details
concerning potential changes to this operating model, which may
impact on future distributions).
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“Our proven strategy of intensive asset management, disciplined
investment decisions, prudent capital management and investing
responsibly has once again delivered for our investors.”
8 CFS Retail Property Trust Group Annual Report 2013
Fund Manager’s report
Stable
Michael Gorman CFX Fund Manager
CFX’s portfolio has proven resilient in a weaker retail
environment
Chadstone Shopping Centre, VIC
29 Retail assets
Australia wide
Dear securityholder, The challenges of a subdued retail market
continued throughout FY13, as the strong Australian dollar
continued to promote alternatives for consumers’ discretionary
spend. While this has created a challenging leasing environment for
landlords, our centres remain close to full, there has been modest
like-for-like income growth, and property valuations are generally
steady.
Within this context, we have delivered another solid result for
investors. In FY13, CFX reported a net profit of $295.0 million and
generated total annual sales of $7.7 billion across our portfolio
of 29 retail assets.
CFX will pay an annual distribution of $384.6 million compared
to $371.5 million for the prior year. This equates to a
distribution per security of 13.60 cents, ahead of the
13.10 cents paid for the previous year.
retail environment and the portfolio While there continue to be
challenges in the Australian retail environment, several
macroeconomic indicators remain supportive for retail expenditure.
Interest rates remain low, positive real wages growth continues and
the rate of growth in offshore travel has slowed significantly in
recent months compared to previous years.
CFX’s shopping centre portfolio1 reported total moving annual
turnover (MAT) of $7.2 billion, which is up 2.0% on the prior year.
Comparable2 specialty stores achieved 2.4% MAT growth this year
which is below our forecast of 3.0%, but an improvement on 2.1%
reported to December 2012 and 1.7% to June 2012. While specialty
store sales continued to steadily improve throughout the year, they
remain below long-term trends.
The quality of CFX’s portfolio, coupled with improving sales
growth, has enabled us to maintain a healthy leasing deal rate,
with close to full occupancy of 99.4%. We have also continued to
provide stability of income through our fixed 5% annual increases
for specialty tenancies. For specialty tenants renewing, which was
around 75% of expiries, we have slightly increased rents. Including
replacements, our overall re-leasing spread for the period was
-1.1% for the shopping centre portfolio. Comparable shopping centre
retail specialty occupancy costs rose modestly, supported by an
increase in sales per sqm.
During the year, each of the portfolio’s assets was independently
valued. CFX ended the year with total assets of $8.6 billion which
is up 2.3% on the prior year driven by capital expenditure on the
development pipeline partially offset by a net valuation loss of
$63.1 million.
Pages 16–19
$7.7b Retail sales
Customer visits
in sustainability
1 Shopping centre portfolio excludes Myer Melbourne, the DFO retail
outlet centres and 15 Bowes Street, Woden.
2 Comparable centres are those centres that are not undergoing or
have not undergone substantial redevelopment in either period of
comparison.
Emporium Melbourne, VIC – Artist’s impression
Chadstone Shopping Centre, VIC
198m
NSW 16% VIC 53% QLD 18% SA 7% WA 3% TAS 3%
Geographic diversification
Super-regional 21% Regional 56% Sub-regional 15% Retail outlet 7%
Other 1%
Property centre type diversification
10 CFS Retail Property Trust Group Annual Report 2013
Solid financial result Over the 12 months to 30 June 2013:
• net profit was $295.0 million, compared to $409.2 million in the
prior year
• net property income1 increased 2.0% on a like-for-like2 basis;
total net property income decreased by 2.0% to $537.2 million,
impacted by the sale of a 50% interest in The Myer Centre Brisbane
in March 2012.
• distributable income3 was up 3.5% to $384.6 million, and
• distribution per stapled security was up 3.8% to 13.60
cents.
Capital management Despite ongoing weakness in the global economy
over the past year, we have seen a growing appetite for
longer-dated debt from corporate bond investors and banks, and an
active corporate bond market with relatively attractive all-in
costs for quality covenants. We have taken advantage of the current
demand to improve CFX’s debt cost, duration and diversity during
the year.
At 30 June 2013, CFX’s gearing4 was 28.8%, up from 26.6% at 30 June
2012, with borrowings of $2,486 million and undrawn debt facilities
of $530 million. Our weighted average interest rate reduced to 5.6%
from 6.0% at 30 June 2012. CFX’s debt was 81.3% hedged at 30 June
2013. We restructured over $940 million
RECONCILIATION OF NET PROFIT TO DISTRIBUTION5 FOR ThE YEAR
ENDED
30-Jun-13 $M
30-JUN-12 $M
net loss from derivative valuations 3.5 87.9
straight-lining revenue (2.4) (2.8)
movement in fair value of unrealised performance fees (5.5)
3.4
non-cash convertible notes interest expense 2.0 7.0
convertible notes buy-back expense – 4.9
project and other items 28.9 26.2
Distributable income/Distribution 384.6 371.5 1 Net property income
and like-for-like net property income are unaudited, non-IFRS
financial information and are not key earnings measures of CFX.
They are used by
management to monitor the performance of the property portfolio.
Please refer to the table on page 11 for the calculation of net
property income and like-for-like net property income.
2 Adjusted for changes in ownership of properties and significant
one-off items impacting either year and excluding development
impacted centres. 3 Distributable income is a key non-IFRS earnings
measure used by management to assess the performance of CFX. It
represents CFX’s underlying and recurring earnings
from ordinary operations. 4 Gearing equals borrowings as a
proportion of total assets. For this calculation, borrowings is the
amount of drawn debt as per Note 11 of the Financial Report
adjusted for the fair value of cross-currency swaps and total
assets exclude the fair value of derivatives. 5 Refer to Note
2 of the Financial Report for further disclosure.
of debt instruments during the year, extending our debt maturity
to 3.1 years at 30 June 2013 from 2.8 years at
30 June 2012. Post year end, we restructured a further
$550 million of debt instruments, improving our debt duration
to 3.6 years.
Solid total returns CFX delivered a solid total return of 10.5% for
the year, albeit below our peer group. CFX outperformed the UBS
Retail 200 Property Accumulation Index over the five and 10-year
periods by 4.7 and 5.6 percentage points per annum
respectively.
CFX relative performance to 30 June 2013
ONE YEAR
THREE YEARSa
FIVE YEARSa
TEN YEARSa
10.5% 22.0%
24.2% 9.3%
11.9% 13.4%
8.8% 4.1%
0.3% 11.2%
5.6% 2.9%
CFS Retail Property Trust Group UBS Retail 200 Property
Accumulation Index S&P/ASX 200 Property Accumulation
Index
a Compound average annual growth rate.
“Our 360 degree approach to retail asset management has delivered
solid outcomes for our investors, with each of the core components
of our FY13 strategy achieved.”
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CFS Retail Property Trust Group Annual Report 2013 11
a As at 30 June 2013, adjusted for post year end activities. b
Excludes short term notes maturing in FY14 which are backed by bank
debt facilities. c The $300m July 2016 convertible notes have a put
option on 4 July 2014.
CalCulation of net ProPerty inCome for the year enDeD
30 Jun 13 $m
30 Jun 12 $m
Extracted from the Consolidated Statement of Comprehensive Income
in the Financial Report Rental and other property income 725.1
727.2
Share of net profit from associate before fair value adjustments1
3.3 3.0
Rates, taxes and other outgoings (201.2) (189.3)
Repairs and maintenance (15.6) (15.8)
Bad and doubtful debts expense (2.5) (2.2)
509.1 522.9
– other items2 8.9 5.5
– estimated net earnings from CFSPAM3 for the current year 1.6
1.6
Net property income 537.2 547.9 -2.0
Like-for-like adjustments
Net property income from development-affected properties4 (69.0)
(70.8)
Net property income adjustment for changes in ownership of
properties5 0.0 (20.3)
Other one-off adjustments6 (2.3) 0.0
Like-for-like net property income 465.9 456.8 2.0
1 Excluding non-property related net profit from associate of $0.1m
(FY12: $0.2m). 2 Refer to Note 2 of the Financial Report for
further explanation of these items. 3 CFSPAM derives car park and
electricity on-selling income from CFX’s portfolio of shopping
centres. CFX’s share of CFSPAM’s earnings for the current year will
be
recognised as dividend income when the dividend is declared by
CFSPAM. 4 Properties have been excluded from the like-for-like
calculation where income has been significantly affected by
development in either year. Properties excluded
are Bayside Shopping Centre, Brimbank Shopping Centre, Forest Hill
Chase, Emporium Melbourne and Roxburgh Park Shopping Centre. 5 On
26 March 2012, CFX sold a 50% share in The Myer Centre Brisbane. An
adjustment is made to the like-for-like calculation to reflect the
change in ownership
interest. 6 Net property income related to the industrial component
of DFO Homebush has been excluded from the like-for-like
calculation as it was not included in the
prior year.
Bank debt Convertible notesc US Private Placement Medium term
notes
43%
13%
12%
32%
Fund Manager’s report
1 The benchmark is the UBS Retail 200 Property Accumulation Index,
customised to remove the effect of CFX on the Index. A 20-day
volume weighted average price (VWAP) is applied to both the CFX
accumulation index and the customised index.
Performance fee Entitlement to the performance fee is assessed
every six months. If payable, it is capped at 0.15% of CFX1’s total
asset value, up to $3.5 billion, and capped at 0.1% of CFX1’s
total asset value above $3.5 billion, with any
over/underperformance carried forward.
For the six months to 31 December 2012, CFX underperformed the
benchmark1 by 12.0 percentage points. For the six months to 30
June 2013, CFX underperformed the benchmark by 2.5 percentage
points. After including the carry-over outperformance of 45.6
percentage points to 30 June 2012, the Responsible Entity
was entitled to performance fees for both periods totalling
$10.3 million for the year. At 30 June 2013,
the carry-over balance is 28.7 percentage points of positive
performance relative to the benchmark.
The fair value of the unrealised performance fee liability
recognised in the balance sheet at 30 June 2013 is
$29.2 million, a decrease of $5.5 million from 30 June 2012.
Total performance fee expense recognised in the statement of
Progress against FY13 priorities
Deliver a distribution of 13.6 to 13.7 cents per security
(cps)
• Distribution of 13.6 cps delivered for FY13.
Achieve specialty retail sales growth of around 3%
for FY13
• CFX shopping centre portfolio delivered 2.4% retail specialty
sales growth.
Invest in the redevelopment pipeline • Developments completed at
Roxburgh Park, Forest Hill Chase and Brimbank Shopping
centres.
• Solid progress on Emporium Melbourne with 90% of income secured
and DFO Homebush with 85% of income secured.
Deliver capital management initiatives to maintain debt diversity
and duration
• Restructured over $940 million of debt instruments, improving the
diversity and duration of CFX’s debt.
• Reinstated the DRP, a funding source for our development
pipeline, raising $56.9 million from the June
2013 distribution.
Drive our existing asset base by remixing tenancies to optimise
performance
• Executed 1,184 new leases during the period and maintained close
to full occupancy.
Support retailers by advancing online and social
media strategies
• Installed digital screens into a number of centres.
• Built on successful social media marketing campaign for the
DFO retail outlet centre portfolio.
comprehensive income is $4.8 million, representing both the capped
performance fees paid for the year and the decrease in the fair
value of future performance fees.
The benefits of our asset management platform The asset management
division of CFSGAM Property provides dual benefits to CFX:
• as one of Australia’s leading property management, leasing and
development specialists, it continues to add value across CFX’s
portfolio of shopping centre assets, and
• it provides CFX with a share of its distributable income
(flowback or alignment fee).
The alignment fee contributed $11.1 million of distributable income
to CFX for the 12 months to 30 June 2013, an 8.8% increase from the
previous year. This increase is largely attributable to development
fee income.
Pages 96–97
CFS Retail Property Trust Group Annual Report 2013 13
FY14 priorities In 2014, your management team will be focused on
delivering further value by executing on its FY14 priorities
(outlined below) and through the intensive asset management of
CFX’s portfolio.
On developments, we are focused on the completion and opening of
the world-class Emporium Melbourne project
and DFO Homebush, arguably Australia’s premier outlet
centre, while progressing the next stage of Chadstone. We will
maintain our prudent approach to capital management.
CFX plans to further refine the quality of its portfolio through
the sale of non-core sub-regional shopping centres. Given the
higher yielding nature of this type of centre, their divestment
would result in a short-term dilution to earnings, which over time
would be partially offset by the reinvestment of the proceeds. The
proceeds will initially be used to retire debt, providing CFX with
flexibility to pursue value enhancing initiatives such as investing
in its development pipeline or acquiring properties.
We retain a degree of caution for the year ahead and forecast
specialty store sales growth of 3%.
Thank you for your continued support of CFX. We look forward to
leveraging the opportunities and meeting the challenges
ahead.
Michael Gorman CFX Fund Manager
Our FY14 priorities
DFO Homebush projects fully leased
• Progress design development of Chadstone
• Continue to master plan other planned projects
Continue to tailor tenant mix to each centre’s trade area
Maintain effectively full occupancy
• Reinvest the sale proceeds of non-core assets
Prudent capital managementw Maintain a strong balance sheet •
Maintain a competitive cost of debt
• Investigate opportunities to extend and diversify sources
of debt
Investing responsibly Continue to lead our retail peers • Undertake
NABERS ratings of our portfolio annually
• Set individual property environmental performance targets
• Report in accordance with the Global Reporting Initiative (GRI)
G4 framework
• Pursue best practice in corporate governance
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Chadstone Shopping Centre, VIC
Our portfolio
Our portfolio benefits from access to 950 property specialists and
their relationships with over 6,000 retailers
Across the CFX portfolio of 29 retail assets, we have over 4,200
retail tenants and an occupancy rate of 99.4% at 30 June 2013. Our
centres span 1.4 million sqm and are generally located in
geographically significant areas, attracting over 198 million
customer visits annually. A team of 950 property specialists across
the broader platform and intensive asset management enables us to
tailor our approach to meet market demand for each of our
centres.
KEY PORTFOLIO METRICS AS AT 30-JUN-13 30-JUN-12
Number of retail assets 29 29
Investment propertiesa ($m) 8,560 8,363
Weighted average capitalisation rateb (%) 6.43 6.45
Total area (’000s, sqm) 1,422 1,404
Number of tenants 4,234 4,194
Number of vacancies 54 32
Occupancy (%) 99.4 99.7
Specialty sales ($/sqm) b,c 10,066 9,576
Specialty occupancy costs b,c (%) 17.3 17.1
Portfolio NABERS Energy ratingd (stars) 3.0 n.a.
Portfolio NABERS Water ratingd (stars) 3.4 n.a.
a Includes investments in the associate as per Note 9 of the
Financial Report. b For the shopping centre portfolio. c For
comparable centres. d Refer to footnote 1 on page 7.
Valuations The transactional market for shopping centres has been
particularly active this year, reflecting strong investor demand.
Whilst there have been a limited number of transactions involving
very large centres, we have seen support for current book values
and higher demand for better quality assets. Capitalisation rate
compression has been limited over the year, a trend also witnessed
in CFX asset valuations.
The entire CFX portfolio was independently valued during the year,
which resulted in a $63.1 million net valuation loss compared to
book value. The loss was driven by a number of asset-specific write
downs, particularly Emporium Melbourne. The remainder of the
portfolio generally reported stable or rising valuations
underpinned by steady income growth.
Notable gains continue to be reported for the valuations of
Chadstone, Chatswood Chase Sydney and Rockingham, which have all
continued to achieve solid sales and rental gains three years post
redevelopment, highlighting the value that centre redevelopments
can bring. Rockingham’s valuation was also boosted by an
improvement in the capitalisation rate. QueensPlaza continues to
perform strongly, underpinned by its retail mix dominated by luxury
tenants.
At Emporium Melbourne the valuation was written down by
$125.9 million. This decrease reflects a change of building
works to accommodate the strength of demand from international
flagship retailers and luxury tenants, together with the delay in
the opening date to the end of the first quarter of calendar year
2014 and taking into account the subdued leasing environment.
QueensPlaza, QLD Chadstone Shopping Centre, VIC
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Key valuation movementsa
QueensPlaza, QLD 31-May-13 570.0 5.75 17.9 3.2
Emporium Melbourne, VIC 30-Jun-13 325.0 n.a. (125.9) (27.9)
a CFX share. b Total gain/(loss) from independent valuations
undertaken in the 2013 financial year, excluding the effect of
straight-lining fixed rental increases. c Calculated as the
valuation gain/(loss) as a proportion of prior book value.
Chatswood Chase Sydney, NSW DFO Homebush, NSW
10.5% Total return for the year
99.4% Portfolio
outlet centres
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The retail environment
“Through engaging with our local communities and having
the right tenancy mix, together with targeted
marketing and making our centres technologically savvy, we create
compelling places to shop.”
18 CFS Retail Property Trust Group Annual Report 2013
Our portfolio
To us, success in retail is about focusing on the wants and needs
of our customers and local communities
It has been another challenging year for Australian retailers.
While consumer spend has remained near long-term average levels,
the strong Australian dollar has produced some compelling offers
for customers with increased access to more affordable
international travel and competitive online purchasing
opportunities. This in turn has diverted some consumer spend away
from traditional retail categories, constraining retail sales
growth.
Towards the end of the year, the Australian dollar had fallen below
parity with the US dollar and some of those alternative purchasing
advantages were starting to dissipate. Other positive signs for the
outlook of the domestic retail sector include: positive real wages
growth, historically low interest rates and rising
house prices.
In response to several tough years in the retail sector, we are
seeing retailers becoming more sophisticated in how they operate.
Many have been reviewing their operating models and supply chains
to implement significant efficiency gains. This has enabled them to
offer goods at lower prices while maintaining or increasing their
profit margins. If anything, the sentiment amongst our retailers is
slightly better than it was 12 months ago.
We recognise that we have a crucial role in ensuring that our
centres provide the best environment to support our retailers.
To do this, we create compelling places to shop by focusing on
the wants and needs of our customers and local communities. That is
part of the success behind our development completions this year,
which focused on convenience and services.
We believe the three major drivers of strong customer engagement
are:
• getting the right retail product
• providing a great experience, and
• actively engaging with customers and our local communities.
CFX’s shopping centre portfolio reported total MAT of $7.2 billion,
up 2.0% compared to the prior year. Comparable specialty stores
achieved 2.4% MAT growth this year, which was below our forecast of
3.0%, but an improvement on 2.1% reported to December 2012 and 1.7%
to June 2012. This steady improvement in sales has been underpinned
by solid MAT growth in food retail (+7.8%), retail services (+5.8%)
and mobile phones (+3.9%), while apparel sales fell modestly
(-1.1%).
MAT growth was 9.4% for comparable DFO centres for the year. This
reflects the success of our extensive remixing and marketing
initiatives implemented since acquiring these assets in 2010, which
has seen the expansion of luxury, international and national brands
in the tenancy mix. This has enabled us to drive re-leasing spreads
of 25% since acquisition.
Despite an improvement in retail sales across the portfolio,
leasing remains challenging. However, the quality of CFX’s
portfolio, coupled with improving sales growth, has enabled us to
maintain a healthy leasing deal rate, with close to full
occupancy
of 99.4%. We have also continued to provide stability of income
through our fixed 5% annual increases for specialty tenancies. For
specialty tenants renewing, which was around 75% of expiries during
the year, we have slightly increased rents. Including replacements,
our overall re-leasing spread for the period was -1.1% for the
shopping centre portfolio.
Comparable shopping centre specialty store occupancy costs rose to
17.3%, up from 17.1% at 30 June 2012, supported by an increase in
the productivity of our retailers, with specialty store sales
rising to $10,066 per sqm from $9,576 per sqm over the same
period.
We remain cautious on retail sales and forecast retail specialty
sales growth of 3% for the CFX portfolio over FY14.
George Karabatross
y
“We were awarded number 1 in the ‘Big Guns’ survey for total
sales for the 12th consecutive year at Chadstone and number 1
in the ‘Little Guns’ survey for specialty sales per sqm for
the 6th consecutive year at QueensPlaza.”
1 Twelve months to Jun-14 and includes vacancies and holdovers. 2
Includes Coles, Target, Kmart and subsidiary brands. 3 Includes Big
W and subsidiary brands. 4 Includes the head office of Colonial
First State Property Management Pty Ltd and centre management
offices.
CFS Retail Property Trust Group Annual Report 2013 19
Specialty tenant lease expiry profile % Area 23.1
20.0
18.5
15.0
23.4
FY141
FY15
FY16
FY17
BEYOND
Woolworths3
20 CFS Retail Property Trust Group Annual Report 2013
Our portfolio
Our development pipeline is a key value driver for CFX, and ensures
that we maintain exciting and relevant shopping centres
DFO hOMEBUSh, NSW
ROXBURGh PARK ShOPPING CENTRE, VIC
CFX’s development pipeline is key to ensuring that we continue to
create retail spaces which are fresh, vibrant and compelling and
which incorporate the latest retailers and trends.
To that end, we have introduced a new large-format Coles, an Aldi
and 40 specialty stores in the recently completed expansion of
Roxburgh Park Shopping Centre, doubling its existing floorspace. We
also completed two smaller convenience-based redevelopments which
included the introduction of a new large-format Coles and a fresh
food precinct at Brimbank, and an Aldi and enhanced food offering
at Forest Hill Chase.
CFX’s development pipeline is currently $1.2 billion. Projects
currently under construction have a development cost of
approximately $698 million (CFX share), with $209 million remaining
to be spent.
Completed The $65 million expansion of Roxburgh Park Shopping
Centre was completed during the period. The centre has been
revitalised and upgraded to a sub-regional asset. The project
included the introduction of a new large-format Coles, an Aldi,
three mini- majors, over 40 specialty stores and the addition of
more than 700 car spaces. The project is expected to achieve a
year-one yield of greater than 8% and an internal rate of return of
greater than 10%.
Project under construction The $100 million development of DFO
Homebush that commenced in November 2012. Leasing is well
progressed with 85% of income secured. The project involves
the addition of a food court and bulky goods retailers, a
remix of tenancies, an expansion and reconfiguration of the
car park, adding 500 new car spaces, as well as a substantial
upgrade to the existing building. Luxury tenants Armani, Zegna and
Michael Kors have already opened stores anchoring a premium mall.
Burberry, Max Mara and Bose have recently been secured, further
enhancing the tenant mix. The project is targeting an initial
year-one yield of greater than 7% and an internal rate of
return of greater than 10%, with the majority of outlet stores to
open by Christmas 2013, and completion of the whole development
expected by June 2014.
Roxburgh Park Shopping Centre, VIC DFO Homebush, NSW
F or
p er
so na
CFS Retail Property Trust Group Annual Report 2013 21
“In an age where consumers are increasingly spoiled for choice, by
having asset-specific planning and introducing new retail concepts
through CFX’s development pipeline, we create compelling places
to shop.”
EMPORIUM MELBOURNE, VIC
ChADSTONE ShOPPING CENTRE, VIC
Project under construction The structure of the Emporium Melbourne
project is now largely complete. As noted in our announcement on 27
June 2013, the project is due to open at the end of the first
quarter of calendar year 2014.
Leasing has progressed significantly in recent months, with
approximately 90% of income secured.
The project will incorporate a range of concept and large flagship
stores housing some of the world’s best international and luxury
brands, some of Australia’s most noted fashion labels and iconic
food operators, in a new building in the heart of the Melbourne
CBD. The completion of this development will reinstate the
connection between Melbourne Central railway station and Bourke
Street Mall, historically one of Melbourne’s busiest pedestrian
thoroughfares.
Some of the key tenants secured include: Max Mara, Paul Smith,
Adidas, Superdry, Super Glue, UNIQLO, Topshop, Coach, Salvatore
Ferragamo, Mulberry, Scanlan & Theodore, sass & bide,
Zimmerman, Oroton, MARCS, SABA, lululemon, Carla Zampatti, Georg
Jensen, Alannah Hill and MAX&Co., as well as a range of quality
food retailers.
The high quality of the tenancy mix that we have secured to date is
an endorsement of the world-class nature of this development.
The $590 million (CFX share) development is targeting a year-one
yield on costs of approximately 5%.
Future development Reinforcing Chadstone as Australia’s premier
shopping centre destination, the project is expected to involve
redeveloping the northern end of the centre producing up to 20,000
sqm of additional retail floor area and introducing new
international retailers. The planning scheme also allows for the
development of office and hotel space along the Princes Highway.
All six of the required planning permit applications have been
submitted to council. The retail project is now in the design
development phase and has an indicative cost of $240 million (CFX
share).
Emporium Melbourne, VIC Chadstone Shopping Centre, VIC – Artist’s
impression
F or
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so na
Lake Haven Shopping Centre Sub-regional 100 249.5 7.50 9.25
34
Queensland
Clifford Gardens Shopping Centre Sub-regional 100 160.9 7.75 9.50
28
Grand Plaza Shopping Centre Regional 50 171.8 6.75 9.13 33
The Myer Centre Brisbane CBD regional 50 370.4 6.50 8.75 34
Post Office Square Other 100 73.2 8.00 9.50 36
QueensPlaza CBD regional 100 570.2 5.75 8.50 37
Runaway Bay Shopping Village Regional 50 118.9 7.25 9.25 39
South Australia
Castle Plaza Shopping Centre Sub-regional 100 151.4 8.00 9.75
27
Elizabeth Shopping Centre Regional 100 361.0 7.00 9.00 32
Tasmania
A quick guide to our property assets
1 Represents the value of units in Bent Street Trust.
22 CFS Retail Property Trust Group Annual Report 2013
Our portfolio
F or
p er
so na
Altona Gate Shopping Centre Sub-regional 100 76.5 8.25 9.75
25
Bayside Shopping Centre Regional 100 583.5 6.25 9.00 25
Brimbank Shopping Centre Sub-regional 100 160.0 7.75 9.35 26
Broadmeadows Shopping Centre Regional 100 325.0 7.50 9.00 26
Chadstone Shopping Centre Super-regional 50 1,667.0 5.25 8.00
27
Corio Shopping Centre Sub-regional 100 121.4 8.00 9.50 29
DFO Essendon Retail outlet 100 134.0 7.75 10.00 29
DFO Moorabbin Retail outlet 100 102.0 8.25 10.00 30
DFO South Wharf Retail outlet 50 177.5 7.50 10.00 31
Forest Hill Chase Regional 100 281.7 7.25 9.00 33
Myer Melbourne – Department store CBD regional 33 111.7 6.00 8.50
35
Myer Melbourne – Emporium Melbourne CBD regional 50 325.0 n.a. n.a.
35
Northland Shopping Centre Regional 50 463.6 6.25 8.50 36
Rosebud Plaza Shopping Centre Sub-regional 100 98.3 8.00 9.75
38
Roxburgh Park Shopping Centre Sub-regional 100 95.0 7.75 9.50
38
Western Australia
Australian Capital Territory
15 Bowes Street, Woden Office 100 12.6 12.00 12.00 39
CFS Retail Property Trust Group Annual Report 2013 23
Chadstone Shopping Centre, VIC Chatswood Chase Sydney, NSW
F or
p er
so na
Tenant distribution (by GLA)
C FX
Asset summaries
Asset summaries
24 CFS Retail Property Trust Group Annual Report 2013 Myer
Melbourne, VIC
F or
p er
so na
Speciality store lease expiry profi le (by GLA)
Tenant distribution (by GLA)
Tenant distribution (by GLA)
Other majors 3.3%
Department stores 18.4%
Discount department stores 16.1% Supermarkets 10.7%
FY14¥
FY15
FY16
FY17
BEYOND
33.0%
28.5%
8.4%
10.9%
19.2%
0 20 40 60 80 100
Mini majors 9.2% Specialty shops 24.4% Other retail 4.3% Non-retail
3.5%
Discount department stores 28.5% Supermarkets 30.1%
Bayside Shopping Centre Frankston, VIC Total retail area (GLA)
(sqm)* 88,701
Number of car spaces 3,448
Vacancy (%) 1.6
Valuation ($m) 583.5
Valuation date Jun-13
Capitalisation rate (%) 6.25
Discount rate (%) 9.00
Terminal yield (%) 6.25
NABERS Energy rating 3.5-star
NABERS Water rating 4.5-star + Bayside/Balmoral: Apr-94;
Quayside/Central Park: Feb-97. ¥ Twelve months to Jun-14 and
includes vacancies and holdovers. * Excluding car park, storage,
ATMs, sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Altona Gate Shopping Centre North Altona, VIC Total retail area
(GLA) (sqm)* 26,897
Number of car spaces 1,640
Vacancy (%) 0.7
Valuation ($m) 76.0
Valuation date Nov-12
Capitalisation rate (%) 8.25
Discount rate (%) 9.75
Terminal yield (%) 8.50
NABERS Energy rating 3.0-star
NABERS Water rating 4.0-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Regional100%APR 94+APR 94 100% Sub-regional
BAYSIDE ShOPPING CENTREALTONA GATE ShOPPING CENTRE
Bayside Shopping Centre is a regional shopping centre situated in
the heart of Frankston, approximately 40 km south of Melbourne’s
CBD. The centre is anchored by Myer, Coles, Target, Safeway, Kmart,
Aldi, Rebel Sport, Toys ‘R’ Us, Lincraft, Best & Less, Country
Road and Hoyts cinemas, and includes more than 260 specialty
stores.
Altona Gate Shopping Centre is a four-level sub-regional shopping
centre located approximately 10 km west of Melbourne’s CBD. The
centre is anchored by Kmart, Coles, Safeway, Best & Less and
includes more than 80 specialty stores.
F or
p er
so na
Tenant distribution (by GLA)
CFX ownership
CFX ownership
Centre type
Tenant distribution (by GLA)
Victoria
Melbourne
Victoria
Melbourne
FY14¥
FY15
FY16
FY17
BEYOND
24.6%
16.4%
12.2%
2.7%
44.1%
FY14¥
FY15
FY16
FY17
BEYOND
32.9%
12.9%
10.5%
12.2%
31.5%
Mini majors 17.1% Specialty shops 26.2% Other retail 11.1%
Non-retail 6.4%
Discount department stores 24.8% Supermarkets 14.4%
Mini majors 15.9% Specialty shops 20.3% Other retail 5.9%
Non-retail 6.2%
Discount department stores 18.3% Supermarkets 33.4%
Date acquired
Date acquired
Broadmeadows Shopping Centre Broadmeadows, VIC Total retail area
(GLA) (sqm)* 60,652
Number of car spaces 3,051
Vacancy (%) 0.1
Valuation ($m) 325.0
Valuation date Jun-13
Capitalisation rate (%) 7.50
Discount rate (%) 9.00
Terminal yield (%) 7.75
NABERS Energy rating 3.5-star
NABERS Water rating 3.0-star + Centre: Apr-94; Homemaker: Dec-04. ¥
Twelve months to Jun-14 and includes vacancies and holdovers. *
Excluding car park, storage, ATMs, sundry and offi ce tenancy areas
but including
kiosk areas. ^ Work in progress.
Brimbank Shopping Centre Deer Park, VIC Total retail area (GLA)
(sqm)* 38,724
Number of car spaces 1,680
Vacancy (%) 0.3
Valuation ($m) 160.0
Valuation date Jun-13
Capitalisation rate (%) 7.75
Discount rate (%) 9.35
Terminal yield (%) 8.00
NABERS Energy rating 1.5-star
NABERS Water rating 4.0-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Regional100%APR 94+100%OCT 02
BROADMEADOWS ShOPPING CENTREBRIMBANK ShOPPING CENTRE
Broadmeadows Shopping Centre is a single-level regional shopping
centre with a Homemaker Centre, located approximately 15 km north
of Melbourne’s CBD. The centre is anchored by Target, Safeway,
Coles, Big W, Hoyts cinemas, Aldi, JB Hi-Fi, Rebel Sport and Best
& Less and includes more than 190 specialty stores.
Brimbank Shopping Centre is a single-level sub-regional shopping
centre located approximately 19 km north-west of Melbourne’s CBD.
The centre is anchored by Woolworths, Coles, Target and Aldi and
includes more than 100 specialty stores. The centre completed a
redevelopment in the fi rst half of 2013.
Centre type
Speciality store lease expiry profi le (by GLA)
Tenant distribution (by GLA)
Tenant distribution (by GLA)
Other majors 1.4%
Department stores 22.4%
Discount department stores 8.2% Supermarkets 5.8%Specialty shops
22.6%
Other retail 7.4% Non-retail 6.7%
Discount department stores 34.2% Supermarkets 29.1%
ChADSTONE ShOPPING CENTRECASTLE PLAZA ShOPPING CENTRE
Chadstone Shopping Centre is a two-level super-regional shopping
centre located approximately 13 km south-east of Melbourne’s CBD.
The centre is anchored by David Jones, Myer, Kmart, Target, Coles,
Woolworths, Aldi, Zara, GAP, JB Hi-Fi and Hoyts cinemas and
includes more than 500 specialty stores, featuring a major
international luxury precinct. The centre is ranked number one in
Australia for total sales.
Castle Plaza Shopping Centre is a single-level sub-regional
shopping centre located approximately 8 km south-west of Adelaide’s
CBD. The centre is anchored by Target, Coles and Foodland and
includes more than 60 specialty stores.
Date acquired
Date acquired
CFX ownership
Super-regional Adelaide
Chadstone Shopping Centre Chadstone, VIC Total retail area (GLA)
(sqm)* 155,181
Number of car spaces 9,324
Vacancy (%) 0.0
90.5
NABERS Energy rating 4.0-star
NABERS Water rating Not rated ¥ Twelve months to Jun-14 and
includes vacancies and holdovers. * Excluding car park, storage,
ATMs, sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Castle Plaza Shopping Centre Edwardstown, SA Total retail area
(GLA) (sqm)* 22,793
Number of car spaces 1,345
Vacancy (%) 0.0
10.3
NABERS Energy rating 1.5-star
NABERS Water rating 2.5-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Centre type
Tenant distribution (by GLA)
ShOPPING CENTREShOPPING CENTRE
Date acquired April
Date acquired April
19941994 CFX ownership
Tenant distribution (by GLA)
FY14¥
FY15
FY16
FY17
BEYOND
30.2%
14.3%
24.5%
11.9%
19.1%
Mini majors 6.2% Specialty shops 26.4% Other retail 0.1% Non-retail
7.2%
Discount department stores 30.8% Supermarkets 29.3%
FY14¥
FY15
FY16
FY17
BEYOND
16.3%
18.5%
21.0%
20.6%
23.6%
Department stores 32.7%
Discount department stores 10.9% Supermarkets 6.1%
Clifford Gardens Shopping Centre Toowoomba, QLD Total retail area
(GLA) (sqm)* 27,515
Number of car spaces 1,604
Vacancy (%) 0.0
Valuation ($m) 160.9
Valuation date Jun-13
Capitalisation rate (%) 7.75
Discount rate (%) 9.50
Terminal yield (%) 8.00
NABERS Energy rating 3.5-star
NABERS Water rating 4.0-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Chatswood Chase Sydney Chatswood, NSW Total retail area (GLA)
(sqm)* 58,557
Number of car spaces 2,441
Vacancy (%) 0.2
Valuation ($m) 845.0
Valuation date May-13
Capitalisation rate (%) 5.75
Discount rate (%) 8.50
Terminal yield (%) 6.00
NABERS Energy rating 3.5-star
NABERS Water rating 2.5-star + 50%: Nov-03; 50%: Aug-07. ¥ Twelve
months to Jun-14 and includes vacancies and holdovers. * Excluding
car park, storage, ATMs, sundry and offi ce tenancy areas but
including
kiosk areas. ^ Work in progress.
CLIFFORD GARDENS ShOPPING CENTREChATSWOOD ChASE SYDNEY
Clifford Gardens Shopping Centre is a single-level sub-regional
shopping centre located approximately 3 km south-west of the
Toowoomba CBD. The centre is anchored by Big W, Woolworths, Coles
and Best & Less and includes more than 80 specialty
stores.
Chatswood Chase Sydney is a four-level regional shopping centre
located approximately 12 km north of Sydney’s CBD. The centre is
anchored by David Jones, Kmart, Coles, JB Hi-Fi, Dick Smith and
Country Road and includes more than 200 specialty stores.
Date acquired
Date acquired
Speciality store lease expiry profi le (by GLA)
Tenant distribution (by GLA)
Tenant distribution (by GLA)
CORIO ShOPPING CENTRE
Corio Shopping Centre Corio, VIC Total retail area (GLA) (sqm)*
28,037
Number of car spaces 1,430
Vacancy (%) 2.3
Valuation ($m) 115.8
Valuation date Nov-12
Capitalisation rate (%) 8.00%
Discount rate (%) 9.50%
Terminal yield (%) 8.25%
NABERS Energy rating n.a.~
NABERS Water rating n.a.~ ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress. ~ Not rateable due to
refurbishment.
FY14¥
FY15
FY16
FY17
BEYOND
32.7%
13.8%
19.0%
16.4%
18.1%
Mini majors 10.3% Specialty shops 28.0% Other retail 0.2%
Non-retail 17.2%
Discount department stores 18.7% Supermarkets 25.6%
Corio Shopping Centre is a single-level sub-regional shopping
centre located approximately 60 km south-west of Melbourne’s CBD,
or 8 km north of Geelong’s CBD. The centre is anchored by Kmart,
Coles, Woolworths, Sam’s Warehouse and Best & Less and includes
more than 90 specialty stores.
Retail outletOCT 10 Date acquired
DFO ESSENDON
DFO Essendon is a single-level retail outlet centre located
approximately 13 km north-west of Melbourne's CBD. The centre
comprises four mini-majors and over 110 specialty stores including
Polo Ralph Lauren, Country Road, Tommy Hilfi ger, Forever New, JB
Hi-Fi, Sheridan and Oroton. The adjacent Homemaker Hub comprises
over 20 large format stores.
Mini majors 10.2% Specialty shops 89.3% Non-retail 0.5%
FY14¥
FY15
FY16
FY17
BEYOND
14.5%
5.6%
50.0%
16.3%
13.6%
DFO Essendon Strathmore, VIC Total retail area (GLA) (sqm)*
19,698
Number of car spaces 2,137
Vacancy (%) 0.0
Valuation ($m) 134.0
Valuation date Jun-13
Capitalisation rate (%) 7.75
Discount rate (%) 10.00
Terminal yield (%) 8.00
NABERS Energy rating n.a.~
NABERS Water rating n.a.~ ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress. ~ Not rateable as there is no
NABERS tool for this type of asset.
Victoria
Melbourne
Tenant distribution (by GLA)
CFX ownership
CFX ownership
Centre type
Centre type
Tenant distribution (by GLA)
DFO hOMEBUSh
DFO Homebush is a single-level retail outlet centre located
approximately 15 km west of Sydney's CBD. The centre comprises over
70 specialty stores including Polo Ralph Lauren, Coach, Armani,
Michael Kors, Oroton, Fossil and Zegna. The centre is currently
undergoing a major development which will be completed by June
2014.
Mini majors 12.5% Specialty shops 85.6% Non-retail 1.9%
FY14¥
FY15
FY16
FY17
BEYOND
14.6%
11.1%
2.4%
16.9%
55.0%
DFO Homebush Homebush, NSW Total retail area (GLA) (sqm)*
10,754
Number of car spaces 1,379
Vacancy (%) 0.0
Valuation ($m) 150.7
Valuation date Dec-12
Capitalisation rate (%) 7.25
Discount rate (%) 9.50
Terminal yield (%) 7.50
NABERS Energy rating n.a.~
NABERS Water rating n.a.~ ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress. ~ Not rateable as there is no
NABERS tool for this type of asset.
NSW
Sydney
DFO Moorabbin Cheltenham, VIC Total retail area (GLA) (sqm)*
25,219
Number of car spaces 1,373
Vacancy (%) 0.0
Valuation ($m) 102.0
Valuation date Jun-13
Capitalisation rate (%) 8.25
Discount rate (%) 10.00
Terminal yield (%) 8.75
NABERS Energy rating n.a.~
NABERS Water rating n.a.~ ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress. ~ Not rateable as there is no
NABERS tool for this type of asset.
FY14¥
FY15
FY16
FY17
BEYOND
32.6%
12.7%
13.8%
16.0%
24.9%
Mini majors 21.3% Specialty shops 78.1% Other retail 0.1%
Non-retail 0.5%
Retail outlet Date acquired
OCT 10
DFO MOORABBIN
DFO Moorabbin is a single-level retail outlet centre located
approximately 21 km south-east of Melbourne's CBD. The centre
comprises several mini-majors and over 130 specialty stores
including Country Road, Tommy Hilfi ger, Mimco, Sheridan and Calvin
Klein Jeans.
F or
p er
so na
Speciality store lease expiry profi le (by GLA)
Tenant distribution (by GLA)
Tenant distribution (by GLA)
EASTLANDS ShOPPING CENTRE
Eastlands Shopping Centre Rosny Park, TAS Total retail area (GLA)
(sqm)* 33,064
Number of car spaces 1,448
Vacancy (%) 2.3
Valuation ($m) 165.5
Valuation date Nov-12
Capitalisation rate (%) 7.25
Discount rate (%) 9.50
Terminal yield (%) 7.50
NABERS Energy rating 4.0-star
NABERS Water rating 3.0-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Mini majors 9.5% Specialty shops 29.7% Other retail 6.4% Non-retail
0.7%
Discount department stores 32.0% Supermarkets 21.7%
FY14¥
FY15
FY16
FY17
BEYOND
42.1%
20.6%
15.1%
6.6%
15.6%
Eastlands Shopping Centre is a two-level regional shopping
centre located approximately 4 km east of Hobart’s CBD.
The centre is anchored by Coles, Kmart, Woolworths, Big W,
Village cinemas, Rebel Sport and Best & Less and includes more
than 90 specialty stores.
Retail outlet50% Date acquired
DEC 10
DFO South Wharf South Wharf, VIC Total retail area (GLA) (sqm)*
32,533
Number of car spaces 3,002
Vacancy (%) 0.6
Valuation ($m) 177.5
Valuation date Jun-13
Capitalisation rate (%) 7.50
Discount rate (%) 10.00
Terminal yield (%) 7.75
NABERS Energy rating n.a.~
NABERS Water rating n.a.~ ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress. ~ Not rateable as there is no
NABERS tool for this type of asset.
FY14¥
FY15
FY16
FY17
BEYOND
12.4%
52.2%
12.4%
6.3%
16.7%
Mini majors 28.2% Specialty shops 64.8% Other retail 6.3%
Non-retail 0.7%
DFO SOUTh WhARF
DFO South Wharf is a two-level retail outlet centre located on the
south-western fringe of Melbourne's CBD, adjacent to Docklands. The
centre comprises 18 mini-majors and over 140 specialty stores
including Armani, Country Road, Mimco, Forever New and JB Hi-Fi.
The adjacent Homemaker Hub comprises over 30 large format
stores.
Victoria
Melbourne
Tenant distribution (by GLA)
Date acquired
Date acquired
CFX ownership
CFX ownership
Tenant distribution (by GLA)
50%
The Entertainment Quarter Moore Park, NSW Total retail area (GLA)
(sqm)* 24,848
Number of car spaces 2,008
Vacancy (%) 4.1
Valuation ($m) 33.2
Valuation date Jun-13
Capitalisation rate (%) 10.00
Discount rate (%) 11.00
Terminal yield (%) 10.25
NABERS Energy rating n.a.~
NABERS Water rating n.a.~ ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress. ~ Not rateable as there is no
NABERS tool for this type of asset.
Elizabeth Shopping Centre Elizabeth, SA Total retail area (GLA)
(sqm)* 73,521
Number of car spaces 3,259
Vacancy (%) 0.3
Valuation ($m) 361.0
Valuation date Jun-13
Capitalisation rate (%) 7.00
Discount rate (%) 9.00
Terminal yield (%) 7.25
NABERS Energy rating 3.5-star
NABERS Water rating 3.5-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress. + CFX acquired 50% in Jul-98 and
50% in Jan-05.
FY14¥
FY15
FY16
FY17
BEYOND
50.5%
19.5%
4.4%
15.3%
10.3%
Mini majors 5.2% Specialty shops 7.2% Other retail 36.3% Non-retail
51.3%
FY14¥
FY15
FY16
FY17
BEYOND
15.7%
17.7%
27.0%
21.6%
18.0%
Department stores 12.5%
Discount department stores 20.4% Supermarkets 10.2%
OtherJUN 04RegionalJUL 98+
ThE ENTERTAINMENT QUARTERELIZABETh ShOPPING CENTRE
The Entertainment Quarter is an entertainment precinct,
approximately 3 km south-east of the Sydney CBD adjacent to
Australia’s premier fi lm making facility in Moore Park. It is
anchored by the Australian Film, Television and Radio School
(AFTRS), Hoyts cinemas, Strike Bowling, includes more than 30
specialty stores and entertainment facilities and has a major
commercial car park.
Elizabeth Shopping Centre is a single-level regional shopping
centre located approximately 24 km north of Adelaide’s CBD. The
centre is anchored by Big W, Coles, Myer, Target, Woolworths, Rebel
Sport, Reading cinemas, JB Hi-Fi and Best & Less and includes
more than 190 specialty stores.
Adelaide
NSW
Sydney
Speciality store lease expiry profi le (by GLA)
Tenant distribution (by GLA)
Tenant distribution (by GLA)
Melbourne
Qld
Mini majors 6.0% Specialty shops 22.9% Other retail 12.3%
Non-retail 3.3%
Discount department stores 37.0% Supermarkets 18.5%
Mini majors 12.9% Specialty shops 23.3% Other retail 15.4%
Non-retail 5.5%
Discount department stores 27.5% Supermarkets 15.4%
Brisbane
JAN 05
Grand Plaza Shopping Centre Browns Plains, QLD Total retail area
(GLA) (sqm)* 53,121
Number of car spaces 2,501
Vacancy (%) 0.5
Valuation ($m) 171.0
Valuation date Jun-13
Capitalisation rate (%) 6.75
Discount rate (%) 9.13
Terminal yield (%) 7.00
NABERS Energy rating 3.5-star
NABERS Water rating 4.0-star + CFX acquired 100% in Oct-02 and sold
50% in Dec-07. ¥ Twelve months to Jun-14 and includes vacancies and
holdovers. * Excluding car park, storage, ATMs, sundry and offi ce
tenancy areas but including
kiosk areas. ^ Work in progress.
Forest Hill Chase Forest Hill, VIC Total retail area (GLA) (sqm)*
59,485
Number of car spaces 3,402
Vacancy (%) 0.6
Valuation ($m) 278.5
Valuation date May-13
Capitalisation rate (%) 7.25
Discount rate (%) 9.00
Terminal yield (%) 7.50
NABERS Energy rating 2.5-star
NABERS Water rating 2.5-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
GRAND PLAZA ShOPPING CENTREFOREST hILL ChASE
FY14¥
FY15
FY16
FY17
BEYOND
30.6%
10.3%
7.4%
16.7%
35.0%
FY14¥
FY15
FY16
FY17
BEYOND
25.3%
15.8%
14.7%
18.7%
25.5%
Grand Plaza Shopping Centre is a single-level regional shopping
centre located approximately 22 km south of Brisbane's CBD. The
centre is anchored by Target, Big W, Woolworths, Coles, Kmart,
Aldi, Best & Less and Event cinemas and includes more than 160
specialty stores.
Forest Hill Chase is a three-level regional shopping centre located
approximately 18 km east of Melbourne’s CBD. The centre is anchored
by Coles, Safeway, Big W, Target, Rebel Sport, JB Hi-Fi, Hoyts
cinemas, Aldi, AMF Bowling, Best & Less and Harris Scarfe and
includes more than 170 specialty stores. The centre completed a
redevelopment in the fi rst half of 2013.
F or
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Tenant distribution (by GLA)
CFX ownership
CFX ownership
Tenant distribution (by GLA)
APR 97+
Date acquired
NOV 98+
The Myer Centre Brisbane Brisbane, QLD Total retail area (GLA)
(sqm)* 63,664
Number of car spaces 1,482
Vacancy (%) 1.3
Valuation ($m) 368.8
Valuation date Nov-12
Capitalisation rate (%) 6.50
Discount rate (%) 8.75
Terminal yield (%) 6.75
NABERS Energy rating 2.0-star
NABERS Water rating 2.5-star + CFX acquired a 100% interest in
Nov-98 and sold 50% in Mar-12. ¥ Twelve months to Jun-14 and
includes vacancies and holdovers. * Excluding car park, storage,
ATMs, sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Lake Haven Shopping Centre Lake Haven, NSW Total retail area (GLA)
(sqm)* 39,082
Number of car spaces 1,692
Vacancy (%) 0.0
Valuation ($m) 248.0
Valuation date Nov-12
Capitalisation rate (%) 7.50
Discount rate (%) 9.25
Terminal yield (%) 7.75
NABERS Energy rating 2.5-star
NABERS Water rating 4.0-star + Centre: Apr-97; Homemaker: Jul-98. ¥
Twelve months to Jun-14 and includes vacancies and holdovers. *
Excluding car park, storage, ATMs, sundry and offi ce tenancy areas
but including
kiosk areas. ^ Work in progress.
FY14¥
FY15
FY16
FY17
BEYOND
32.1%
26.6%
17.5%
7.0%
16.8%
FY14¥
FY15
FY16
FY17
BEYOND
30.0%
18.0%
14.0%
16.4%
21.6%
Department stores 49.4%
Discount department stores 11.5% Supermarkets 3.1%Mini majors
9.8%
Specialty shops 18.3% Other retail 16.4% Non-retail 16.3%
Discount department stores 19.0% Supermarkets 20.2%
LAKE hAVEN ShOPPING CENTRE
The Myer Centre Brisbane is a six-level CBD regional shopping
centre located in the heart of Brisbane. The centre is anchored by
Myer, Target, Event cinemas, Coles Central, Best & Less and
Lincraft and includes more than 180 specialty stores.
Lake Haven Shopping Centre is a single-level sub-regional shopping
centre and business park located approximately 10 km north-east of
Wyong. The centre is anchored by Kmart, Woolworths, Coles and Best
& Less and includes more than 120 specialty stores.
F or
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Tenant distribution (by GLA)
Tenant distribution (by GLA)
Department stores 100.0%
Myer Melbourne – department store Melbourne, VIC Total retail area
(GLA) (sqm)* 38,729
Vacancy (%) 0.0
Net income FY13 (including fl owback) ($m) 6.4
Book value (including WIP^) ($m) 111.7 + Based on a blended
calculation of CFX ownership of 33% of Myer Melbourne –
department store and 50% of Emporium Melbourne. * Excluding car
park, storage, ATMs, sundry and offi ce tenancy areas but
including
kiosk areas. ^ Work in progress.
Date acquired
MYER MELBOURNE
Myer Melbourne is an iconic retail redevelopment project in the
heart of the Melbourne CBD. The Bourke Street component, Myer
Melbourne – department store, involved the reconstruction and
complete revitalisation of the Myer department store and was offi
cially launched in March 2011. The Lonsdale Street component,
Emporium Melbourne, will comprise large-format fl agship and
specialty stores with pedestrian links to Myer, David Jones and
Melbourne Central. The total project will comprise approximately
85,000 sqm of retail space and is scheduled for completion in
2014.
100% Sub-regional Date acquired
SEP 09
Northgate Shopping Centre Glenorchy, TAS Total retail area (GLA)
(sqm)* 19,278
Number of car spaces 873
Vacancy (%) 1.2
Valuation ($m) 88.5
Valuation date May-13
Capitalisation rate (%) 8.25
Discount rate (%) 10.00
Terminal yield (%) 8.50
NABERS Energy rating 3.0-star
NABERS Water rating Not rated ¥ Twelve months to Jun-14 and
includes vacancies and holdovers. * Excluding car park, storage,
ATMs, sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
FY14¥
FY15
FY16
FY17
BEYOND
22.7%
19.4%
17.0%
16.0%
24.9%
Mini majors 6.2% Specialty shops 32.6% Other retail 0.1% Non-retail
6.8%
Discount department stores 29.9% Supermarkets 24.4%
NORThGATE ShOPPING CENTRE
Northgate Shopping Centre is a single-level sub-regional shopping
centre located approximately 8 km north-west of the Hobart CBD. The
centre is anchored by Target, Coles and Best & Less and
includes more than 60 specialty stores.
Hobart
Tenant distribution (by GLA)
Property portfolio
CFX ownership
CFX ownership
Centre type
Tenant distribution (by GLA)
FY14¥
FY15
FY16
FY17
BEYOND
24.8%
14.7%
3.3%
21.5%
35.7%
Post Offi ce Square Brisbane, QLD Total retail area (GLA) (sqm)*
1,750
Number of car spaces 316
Vacancy (%) 1.3
Valuation ($m) 73.0
Valuation date Nov-12
Capitalisation rate (%) 8.00
Discount rate (%) 9.50
Terminal yield (%) 8.25
NABERS Energy rating n.a.~
NABERS Water rating n.a.~ ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress. ~ Not rateable as there is no
NABERS tool for this type of asset.
Other Date acquired
FY14¥
FY15
FY16
FY17
BEYOND
13.6%
25.7%
26.4%
19.6%
14.7%
Other majors 2.0%
Department stores 20.1%
Discount department stores 14.5% Supermarkets 9.0%
Northland Shopping Centre Preston, VIC Total retail area (GLA)
(sqm)* 90,804
Number of car spaces 4,800
Vacancy (%) 0.2
Valuation ($m) 461.6
Valuation date Dec-12
Capitalisation rate (%) 6.25
Discount rate (%) 8.50
Terminal yield (%) 6.50
NABERS Energy rating 3.5-star
NABERS Water rating 4.0-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Date acquired
APR 94
NORThLAND ShOPPING CENTRE
Post Offi ce Square is a mixed-use complex located in the heart of
the Brisbane CBD. The property incorporates a six-level basement
car park and a single-level retail arcade, including over 20
specialty stores.
Northland Shopping Centre is a two-level regional shopping centre
located approximately 11 km north of Melbourne's CBD. The centre is
anchored by Myer, Kmart, Target, Coles, Woolworths, Toys 'R' Us,
Rebel Sport, Lincraft, JB Hi-Fi, Country Road and Hoyts cinemas and
includes more than 300 specialty stores.
Qld Brisbane
Centre type
F or
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Speciality store lease expiry profi le (by GLA)
Tenant distribution (by GLA)
Tenant distribution (by GLA)
Perth
Rockingham Shopping Centre Rockingham, WA Total retail area (GLA)
(sqm)* 60,699
Number of car spaces 3,021
Vacancy (%) 0.0
Valuation ($m) 266.9
Valuation date Jun-13
Capitalisation rate (%) 6.25
Discount rate (%) 8.75
Terminal yield (%) 6.50
NABERS Energy rating 0.0-star
NABERS Water rating 2.0-star + CFX acquired 12.5% in Oct-02, 4.2%
in May-05 and 33.3% in Dec-07. ¥ Twelve months to Jun-14 and
includes vacancies and holdovers. * Excluding car park, storage,
ATMs, sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Mini majors 15.5% Specialty shops 29.9% Other retail 9.2%
Non-retail 6.7%
Discount department stores 24.4% Supermarkets 14.3%
FY14¥
FY15
FY16
FY17
BEYOND
31.1%
34.3%
11.3%
8.3%
15.0%
ROCKINGhAM ShOPPING CENTRE
Rockingham Shopping Centre is a single-level regional shopping
centre located approximately 40 km south-west of Perth's CBD. The
centre is anchored by Kmart, Target, Woolworths, Coles, Ace
cinemas, Best & Less, JB Hi-Fi and Rebel Sport and includes
more than 210 specialty stores.
100% CBD regionalJUL 01 Date acquired
Mini majors 1.2% Specialty shops 18.3%
Department stores 68.3%
Supermarkets 4.1%
Number of car spaces 600
Vacancy (%) 0.1
Valuation ($m) 570.0
Valuation date May-13
Capitalisation rate (%) 5.75
Discount rate (%) 8.50
Terminal yield (%) 6.00
NABERS Energy rating 2.0-star
NABERS Water rating 2.5-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
QUEENSPLAZA
QueensPlaza is a three-level CBD regional shopping centre located
in the heart of Brisbane. The centre is anchored by David Jones and
Coles Central, features luxury retailers such as Chanel, Louis
Vuitton, Salvatore Ferragamo and Tiffany & Co. and includes
more than 70 specialty stores.
Qld Brisbane
F or
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Tenant distribution (by GLA)
CFX ownership
CFX ownership
Centre type
Tenant distribution (by GLA)
ROXBURGh PARK ShOPPING CENTRE
Roxburgh Park Shopping Centre Roxburgh Park, VIC Total retail area
(GLA) (sqm)* 24,366
Number of car spaces 1,201
Vacancy (%) 0.0
Valuation ($m) 95.0
Valuation date Jun-13
Capitalisation rate (%) 7.75
Discount rate (%) 9.50
Terminal yield (%) 8.00
NABERS Energy rating n.a.~
NABERS Water rating n.a.~ + Land: Dec-97; Opened: Dec-99. ¥ Twelve
months to Jun-14 and includes vacancies and holdovers. * Excluding
car park, storage, ATMs, sundry and offi ce tenancy areas but
including
kiosk areas. ^ Work in progress. ~ Not rateable due to
development.
FY14¥
FY15
FY16
FY17
BEYOND
0.0%
2.8%
3.3%
10.2%
83.7%
Mini majors 18.7% Specialty shops 23.6% Other retail 3.3%
Non-retail 7.0%
Supermarkets 47.4%
Date acquired
JUL 98
Rosebud Plaza Shopping Centre Rosebud, VIC Total retail area (GLA)
(sqm)* 24,122
Number of car spaces 1,070
Vacancy (%) 1.0
Valuation ($m) 98.3
Valuation date Nov-12
Capitalisation rate (%) 8.00
Discount rate (%) 9.75
Terminal yield (%) 8.25
NABERS Energy rating 3.0-star
NABERS Water rating 5.0-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Mini majors 1.8% Specialty shops 23.5% Other retail 1.3% Non-retail
2.7%
Discount department stores 55.6% Supermarkets 15.1%
ROSEBUD PLAZA ShOPPING CENTRE
Roxburgh Park Shopping Centre is a single-level sub-regional
shopping centre located approximately 20 km north of Melbourne's
CBD. The centre is anchored by Woolworths, a large format Coles and
Aldi and includes more than 60 specialty stores. The centre
completed a major redevelopment in 2013.
Rosebud Plaza Shopping Centre is a single-level sub-regional
shopping centre located approximately 85 km south of Melbourne's
CBD. The centre is anchored by Kmart, Coles, Safeway and Target and
includes more than 60 specialty stores.
Sub-regional Centre type
Speciality store lease expiry profi le (by GLA)
Tenant distribution (by GLA)
Tenant distribution (by GLA)
RUNAWAY BAY ShOPPING VILLAGE 15 BOWES STREET, WODEN
Runaway Bay Shopping Village Runaway Bay, QLD Total retail area
(GLA) (sqm)* 42,469
Number of car spaces 2,280
Vacancy (%) 0.7
8.7
NABERS Energy rating 3.0-star
NABERS Water rating 4.5-star ¥ Twelve months to Jun-14 and includes
vacancies and holdovers. * Excluding car park, storage, ATMs,
sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
15 Bowes Street, Woden Woden, ACT Total offi ce area (NLA) (sqm)*
9,108
Number of car spaces 11
Vacancy (%) 0.0
2.5
NABERS Energy rating 3.5-star
NABERS Water rating Not rated ¥ Twelve months to Jun-14 and
includes vacancies and holdovers. * Excluding car park, storage,
ATMs, sundry and offi ce tenancy areas but including
kiosk areas. ^ Work in progress.
Mini majors 14.4% Specialty shops 21.5% Other retail 2.4%
Non-retail 6.7%
Discount department stores 32.0% Supermarkets 23.0%
Non-retail 100.0%Non-retail 100.0%
FY14¥
FY15
FY16
FY17
BEYOND
36.0%
21.3%
13.9%
8.0%
20.8%
FY14¥
FY15
FY16
FY17
BEYOND
54.8%
0.0%
0.0%
0.0%
45.2%
Runaway Bay Shopping Village is a single-level regional shopping
centre located approximately 8 km north of the Gold Coast CBD. The
centre is anchored by Woolworths, Coles, Big W, Target,
Best & Less, Dick Smith and Aldi and includes more
than 120 specialty stores.
15 Bowes Street is located in the suburb of Woden, approximately 10
km south of the Canberra CBD. The property comprises eight levels,
which is largely offi ce accommodation.
Regional Offi ce CFX ownership
Asset type
F or
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y
Responsible property investment is at the core of what we do
40 CFS Retail Property Trust Group Annual Report 2013
Investing responsibly
During the year, we reached an important step in the benchmarking
of our shopping centres by completing NABERS ratings on all
rateable1 centres. Benchmarking our assets in this way means we are
better able to scrutinise the operational performance and more
effectively manage our assets.
Such outcomes illustrate our commitment to responsible property
investment; it makes good business sense.
We have been recognised for our commitment to responsible property
investment by a number of independent local and global industry
bodies. In FY13 this included being recognised:
• as a leader in performance and disclosure in the Carbon
Disclosure Project (CDP) for Australia and New Zealand
• as a ‘Green Star’ (20th out of 451 funds globally) in the Global
Real Estate Sustainability Benchmark (GRESB), and
• for our diligent approach to valuations and corporate governance
at the Asia Pacific Real Estate Association (APREA) awards for best
practice.
The recognition we have received reflects our vision to be the
leading manager of Australian retail property, and underpins
our focus on providing long-term sustainable returns for our
investors.
In the year ahead, we’ll be focused on optimising asset efficiency,
building stronger connections with the communities in which our
assets operate and creating compelling places to shop.
Materiality analysis
This year we embarked on a journey to formalise engagement with our
stakeholders on a range of environmental, social and governance
(ESG) related matters.
With the assistance of independent expert Net Balance, we undertook
a thorough review of our internal processes, policies and
strategies, examined the issues faced by our peers and reviewed how
we are represented in the media. By identifying our stakeholders’
level of interest and engagement compared to CFX on a range of ESG
matters, we have been able to prioritise these into our business
risk model.
Finally, we coupled this examination with a series of interviews
with stakeholder groups to provide greater insights into the
risks and opportunities contained within our responsible
property investment platform. This was an important step
in
validating the material ESG issues currently being managed by CFX
and in identifying any possible gaps or areas
for improvement.
Pleasingly, our stakeholders told us we were proactive and easy to
engage with, and provided high levels of information disclosure.
They believed we were effectively addressing macro trends and that
we showed a strong commitment to integrating sustainable building
design and materials selection into the standard approach for new
developments and refurbishments.
Some of our stakeholders said that they want further visibility of
how we embed ESG considerations into our business strategy and
management. We will continue to look for ways to improve our
communication in this area as we implement new initiatives and
review our program annually.
Our integrated approach to responsible property investment
continues to reap rewards for our investors, with FY13 marking
a number of milestone achievements
Rowan Griffin
Head of Sustainability, Property
“We have been recognised for our commitment to responsible property
investment by a number of independent local and global industry
bodies.”
1 Refer to footnote 1 on page 7.
F or
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CFS Retail Property Trust Group Annual Report 2013 41
Our absolute performance over time Energy and emissions • Reduced
consumption by 121,551 GJ, and emissions by 50,545 tCO2-e.
• Saved enough energy to power 2,487 Australian homes.
• $7.9 million of avoided costs.
Water • Reduced consumption by 815 ML.
• Saved enough water to fill 326 Olympic-sized swimming
pools.
• $2.2 million of avoided costs.
Recycling • Achieved a recycling rate of 29% in FY13.
• Diverted 10,308 tonnes of waste away from landfill.
• Saved enough waste to fill 2,114 standard metropolitan
buses.
• $1.6 million of avoided costs.
Note: Data in this table is reported against a base year for
energy, emissions and water of FY08, and for recycling of
FY12.
The business case Our responsible property investment program
focuses on mitigating risks and capitalising on
opportunities.
• It’s better for business – green attributes of buildings can
provide greater comfort, resulting in a better overall
experience for our tenants and customers.
• It can lower costs – green buildings save money through reduced
energy and water use and have lower long-term operating and
maintenance costs, benefitting our investors and our
tenants.
• It mitigates risks – regulatory risks and investment risks from
climate change are increasingly apparent, and by optimising asset
performance through reduced consumption we are continually seeking
to mitigate against those risks.
1 Refer to footnote 1 on page 7. 2 Excluding GreenPower.
Performance benchmarking The Manager of CFX has been actively
involved in the development of NABERS rating tools for
shopping centres.
During FY13, we assisted in the ongoing refinement of the NABERS
shopping centre ratings tools through our involvement in the NABERS
(Shopping Centres) Technical Working Group, making them more robust
and relevant.
We participated in pilot programs in 2010 and had five assets
formally rated in 2011. This increased to 11 assets rated in 2012,
and the entire portfolio1 was rated this year averaging 3.0 stars
for energy2 and 3.4 stars for water.
“ We have avoided $7.9 million in energy costs,
$2.2 million in water costs and $1.6 million in waste
costs.”
“ Having our entire portfolio NABERS rated, averaging 3.0 stars for
energy and 3.4 stars for water, is an important step in
benchmarking the performance of our assets.”F
or p
er so
Investing responsibly
Intensity1 (MJ/sqm)
Absolute2 (GJ)
Energy Emissions Water Recycling
FY13 390 MJ 90 kg CO2-e 0.87 kL 4.9 kg diverted
– vs FY12 0.5% 0.7% 5.2% 20.4%
– vs FY08 8.2% 15.9% 20.5%
Reducing our environmental impact Our focus remains on improving
the efficiency (intensity) of our portfolio. We report our
portfolio intensity by measuring our environmental footprint as a
proportion of our retail market footprint (in square metres). Our
goal is to lower our intensity over time.
Data integrity
The full data set and CFSGAM fund reporting criteria report can be
found on our website cfsgam.com.au/cfx
Where you see this symbol, data has been assured by Net Balance in
accordance with ASAE3000, in current and prior years.
1 Intensity indicators are reported on a like-for-like basis and
exclude 15 Bowes Street, Woden, the DFO retail outlet centres and
centres where GLA has varied by more than 10% over the
period.
2 Absolute figures are reported for total portfolio.
F or
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Our roadmap to responsible property investment
Our FY13 scorecard Our FY14 priorities
Energy and emissions All rateable shopping centres had NABERS
Energy ratings this year.
• Improve overall energy efficiency and NABERS Energy
performance.
• Set individual property targets.
• Develop operational energy performance monitoring through the
Asset Efficiency Program.
Water Most rateable shopping centres had NABERS Water ratings this
year.
• Improve overall water efficiency and NABERS Water
performance.
• Set individual property targets.
• Develop operational water performance monitoring through the
Asset Efficiency Program.
Recycling Active in ongoing education of tenants, cleaners and
waste contractors through toolbox sessions, newsletters and
performance reporting.
• Reinforce engagement with our tenants, cleaners and waste
contractors.
Achieved 29% waste diversion from landfill. • Achieve a waste
target of 46% diversion from landfill.
Public place recycling put in place. • Strengthen public place
recycling messaging.
Social Completed a stakeholder engagement and materiality review
for the business.
• Formalise materiality framework for ongoing stakeholder
engagement.
Supported retailers through our digital and online strategy through
introduction of digital media screens at selected centres and the
use of social media for marketing.
• Develop and implement a framework to formalise our community
engagement strategy.
Reporting/governance Completed a tender to find a new and improved
data management and reporting platform provider.
• Implement new data management and reporting platform.
• Expand the use of digital and social media to assist retailers
and customers.
Undertook a gap analysis and remain on track to report against the
global reporting initiative (GRI) G4 framework.
• Report in accordance with GRI G4 framework for 2014 Ann